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Bando Corp. sells a single part for a price of $49 per unit. The variable costs of the part are $21 per unit and monthly fixed costs are $151,200. Required: a. What is the break-even level of monthly sales for Bando

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hyderali230

Answer:

Break-even level of monthly sales for Bando is 5,400 units and $264,600

Explanation:

Selling price =  $49

variable cost = $21

Contribution margin = Selling price - variable cost = $49 - $21 = $28

Fixed Cost = $151,200

Break even point = Fixed cost / contribution margin = $151,200 / 28 = 5,400 units

Break even point i $ = 5,400 x 49 = $264,600

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